Retail Properties of America, Inc. Announces Closing of $1 Billion Unsecured Credit Facility

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Retail Properties of America, Inc. Announces Closing of $1 Billion Unsecured Credit Facility

OAK BROOK, Ill.--(BUSINESS WIRE)-- Retail Properties of America, Inc. (NYSE: RPAI or the "Company") announced the closing of a $1 billion amended and restated credit facility, increasing total capacity by $350 million. The amended and restated facility (the "Facility") is comprised of a $450 million unsecured term loan and a $550 million unsecured revolver. The current interest rate on the unsecured revolver decreased 50 bps to LIBOR plus 1.50% per annum and the current interest rate on the unsecured term loan decreased 55 bps to LIBOR plus 1.45% per annum. The improvement in pricing is due to a reduction in the applicable margin across all tiers of the leverage grid as well as a migration to the lowest tier of the leverage grid. The movement within the leverage grid is the result of a reduction in the capitalization rate that is used to determine asset value under the Facility, from 7.50% to 7.25%.

"The improved economics and structure of this Facility furthers the Company's progress toward an investment grade rating by providing additional capacity to unencumber properties and grow the asset base at an improved cost of capital. We appreciate the continued support of the bank group and their recognition of the substantial progress we have made to date," stated Angela Aman, executive vice president and chief financial officer.


The maturity dates on the Facility were extended by over two years, to May 2018 for the unsecured term loan and May 2017 for the unsecured revolver. The Company will have the option to extend the maturity of the unsecured revolver for one additional year to 2018, which it may exercise, subject to continued compliance with the terms of the Facility and the payment of an extension fee of 0.15%, a 10 bps reduction from the previous facility. The Facility includes an accordion feature that allows the Company to increase the total potential capacity of the Facility up to $1.45 billion, subject to certain conditions.

Wells Fargo Securities, LLC and KeyBanc Capital Markets Inc. served as co-lead arrangers, with KeyBank, NA serving as administrative agent and Wells Fargo Bank, NA serving as syndication agent. Bank of America, N.A., Citibank, N.A., Deutsche Bank Securities, Inc, PNC Bank, N.A., and Regions Bank served as documentation agents. U.S. Bank, N.A. and The Bank of Nova Scotia served as senior managing agents. Capital One, N.A., Fifth Third Bank, and Union Bank N.A. served as managing agents. Branch Banking & Trust Company, JP Morgan Chase Bank, N.A., and Sumitomo Mitsui Banking Corp. also participated in the Facility.

About RPAI

Retail Properties of America, Inc. is a fully integrated, self-administered and self-managed real estate investment trust that owns and operates high quality, strategically located shopping centers across 35 states. The Company is one of the largest owners and operators of shopping centers in the United States. The Company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI. Additional information about the Company is available at www.rpai.com.



Retail Properties of America, Inc.
Michael Fitzmaurice
Vice President
(800) 541-7661
fitzmaurice@rpai.com

KEYWORDS:   United States  North America  Illinois

INDUSTRY KEYWORDS:

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